<TABLE border=0 cellSpacing=0 cellPadding=0 width=452><TBODY><TR><TD vAlign=top width=452 colSpan=2>Published May 29, 2009
</TD></TR><TR><TD vAlign=top width=452 colSpan=2>Indian group eyeing Island Power project
By RONNIE LIM
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(SINGAPORE) India's GMR Group is in 'close negotiations' with international power giant Intergen to take over 100 per cent ownership of the latter's stalled $1 billion Island Power project in Singapore - which it now hopes to kick- start by this year-end.
'That is when GMR hopes to concurrently secure a piped natural gas supply deal with Indonesia, as well as get the project nod from the Singapore authorities, including the Energy Market Authority (EMA), with whom they are in continuing dialogue,' sources told BT.
This is the latest twist in Island Power's planned 785-megawatt cogeneration station on Jurong Island - a project mooted since 2002 by Intergen, but one which has seen as many ownership changes as the obstacles it has encountered.
The main stumbling block remains its inability to gain access to a gas pipeline here to bring in its own Indonesian natural gas supplies.
The Indian infrastructural group is clearly pushing all out for a Singapore power presence - as reflected in its unsuccessful bids last year for two of the largest generating companies, Tuas Power and Senoko Power, which were eventually sold off by Temasek Holdings.
GMR with already a half stake in Intergen - having bought out US private equity fund AIG Highstar Capital II's stake for US$1.1 billion last October - is now in talks with its Intergen partner Ontario Teachers' Pension Plan to take over the entire Island Power Company here for an undisclosed sum.
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</TD></TR></TBODY></TABLE>This is understood to include Island Power's assets here, as well as its earlier generating licence from EMA as well as land lease on Jurong Island.
'It's not difficult to understand why Intergen would want to exit the Island Power project, given that it's dragged all the way since 2002,' one industry observer noted.
An earlier $970 million engineering, procurement and construction contract awarded to German firm Siemens and Korean giant Samsung in mid-2006 has apparently also lapsed.
But the Island Power project is clearly back on the agenda, following GMR's establishment here of its regional HQ for SE- Asia.
As GMR International's CEO Ranjit Murugason indicated then: 'We are optimistic the project can be commissioned soon,' adding that 'we don't envisage any issues over gas supplies'.
In order to gain access to Singapore's gas pipeline network, EMA has asked Island Power to secure a new gas supply agreement first - this after Island's earlier gas supply deal was cancelled by the Indonesian authorities following its failure to gain access to the Singapore portion of the Sumatra-Singapore pipeline due to legal wrangles involving incumbent parties here.
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</TD></TR><TR><TD vAlign=top width=452 colSpan=2>Indian group eyeing Island Power project
By RONNIE LIM
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</TD><TD>Feedback</TD></TR></TBODY></TABLE>(SINGAPORE) India's GMR Group is in 'close negotiations' with international power giant Intergen to take over 100 per cent ownership of the latter's stalled $1 billion Island Power project in Singapore - which it now hopes to kick- start by this year-end.
'That is when GMR hopes to concurrently secure a piped natural gas supply deal with Indonesia, as well as get the project nod from the Singapore authorities, including the Energy Market Authority (EMA), with whom they are in continuing dialogue,' sources told BT.
This is the latest twist in Island Power's planned 785-megawatt cogeneration station on Jurong Island - a project mooted since 2002 by Intergen, but one which has seen as many ownership changes as the obstacles it has encountered.
The main stumbling block remains its inability to gain access to a gas pipeline here to bring in its own Indonesian natural gas supplies.
The Indian infrastructural group is clearly pushing all out for a Singapore power presence - as reflected in its unsuccessful bids last year for two of the largest generating companies, Tuas Power and Senoko Power, which were eventually sold off by Temasek Holdings.
GMR with already a half stake in Intergen - having bought out US private equity fund AIG Highstar Capital II's stake for US$1.1 billion last October - is now in talks with its Intergen partner Ontario Teachers' Pension Plan to take over the entire Island Power Company here for an undisclosed sum.
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'It's not difficult to understand why Intergen would want to exit the Island Power project, given that it's dragged all the way since 2002,' one industry observer noted.
An earlier $970 million engineering, procurement and construction contract awarded to German firm Siemens and Korean giant Samsung in mid-2006 has apparently also lapsed.
But the Island Power project is clearly back on the agenda, following GMR's establishment here of its regional HQ for SE- Asia.
As GMR International's CEO Ranjit Murugason indicated then: 'We are optimistic the project can be commissioned soon,' adding that 'we don't envisage any issues over gas supplies'.
In order to gain access to Singapore's gas pipeline network, EMA has asked Island Power to secure a new gas supply agreement first - this after Island's earlier gas supply deal was cancelled by the Indonesian authorities following its failure to gain access to the Singapore portion of the Sumatra-Singapore pipeline due to legal wrangles involving incumbent parties here.
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